Mark Cuban: Healthcare Is ‘Too Expensive’ — 3 Things That Can Be Done To Lower Costs

If you’re shocked by everything from the cost of a new medication to the bill you received after surgery, you’re not alone. Healthcare costs are only increasing and from paying for health insurance to simply covering your bills after an illness, it can be difficult to keep up.

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Why Mark Cuban Thinks Healthcare Is Too Expensive Transition Away From Insurance Companies Approving and Denying Claims Create Direct Contracts With Providers Explore New Providers and Alternative Options

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In fact, Healthcare.gov reports that treating a broken leg can cost $7,500, while a three-day hospital stay can total $30,000. Such expenses can take a toll. The Consumer Financial Protection Bureau reported that approximately 100 million Americans owed over $220 billion in medical debt.

It’s difficult to avoid rising healthcare costs, especially when you need care, but American businessman and television personality Mark Cuban might have some solutions — read on to find out.

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Why Mark Cuban Thinks Healthcare Is Too Expensive

Mark Cuban highlighted the broken healthcare system in December 2024. He took to Bluesky, calling healthcare pricing “horrific.”

He said hospitals and doctors tend to bear the full financial burden when patients fail to pay deductibles, copays or coinsurance. To compensate for these unpaid amounts, they often increase their prices.

Cuban explained that hospitals and doctors face administrative challenges in collecting those large amounts from patients and medical debt can lead to bankruptcy.

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He also identified issues with the health insurance agency. Cuban explained that health insurance agencies don’t actually provide insurance to those covered by self-insured entities, such as an employer that insures its employees and pays for their claims directly.

While Cuban identified several flaws with healthcare costs, he also suggested three ways to lower your costs.

Transition Away From Insurance Companies Approving and Denying Claims

When a self-insured business hires an insurance company to review insurance claims, it’s in the insurance company’s financial best interest to deny claims, saving the business money. The business doesn’t have to pay for services that are denied, which can ultimately boost their bottom line. Unfortunately, that also means that necessary services are denied, leaving patients to go without or pay for the services out of pocket.

Instead of relying on insurance companies to evaluate claims and process payments, Cuban suggested that the process be performed by independent third-party authorizers which have no economic incentive to approve or deny health insurance claims.

Cuban’s idea is appealing and could address the conflict of interest that insurance companies have during the claims process. Until that idea or a similar one is implemented, your insurance company might deny your claim. The Patient Advocate Foundation offers some helpful advice on additional steps you can take if you receive a denial letter.

Create Direct Contracts With Providers

Cuban suggested that self-insured businesses — such as his business, Cost Plus Drugs — transition to contracting directly with healthcare providers. In such a situation, the business would pay for the entire cost of care immediately. “There will be no out of pocket costs for employees when they use providers in our network,” he wrote.

The process is simpler for employees and doesn’t carry the stress of worrying about denied claims or having to change treatments based on insurance company approval. But it also benefits the business. “In exchange, we ask the providers to charge us much less than they currently charge,” Cuban explained.

Explore New Providers and Alternative Options

Cost Plus Drugs is one example of how seeking out new providers can help you save money on your healthcare costs. In creating Cost Plus Drugs, Cuban cut out the pharmacies and instead negotiates directly with drug manufacturers. This unique business structure helps the business to get the best possible price on medication, saving you money, in turn.

Cost Plus Drugs is also highly transparent about the pricing; they show you just how much you’ll pay, including shipping, before you place an order. Their approach helps you plan ahead for your costs, rather than arriving at the pharmacy to pick up your medication without knowing how much you’ll pay.

Cuban’s three solutions can help you save on your healthcare costs, though they’ll take time to implement. In the meantime, you can potentially save on health insurance by shopping around and comparing plans during open enrollment. If your employer offers a Health Savings Account (HSA) or similar option, you can save pre-tax dollars to use to pay for medical costs. Don’t forget to also use platforms like GoodRx to track and save money on your prescription costs.

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